A slowdown in food prices pulled China's consumer price index back from a 13-month high, while producer prices continued to deflate at their quickest rate since 2009.
China's consumer price index fell from 2 per cent in August to 1.6 per cent in September. Food inflation pulled back 0.1 per cent month-to-month. On a year-to-year basis food prices were up 2.7 per cent, shaving an entire percentage point off the rate in August.
In August, pork prices were an outlier to the disinflationary trend, rising nearly one-fifth over the year. That pushed CPI to 2 per cent, a 13-month high. The risk of runaway pork prices likely diminished last month, but full details aren't out yet to confirm this.
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